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Positive Close for S&P 500 Would Be Longest Winning Streak Since June

EQUITIES
  • 90 minutes into trade and cash equities hold decent gains. A positive close today for the S&P 500 would be fifth consecutive higher close and a finish at current or higher levels would mean the first break above the 50-dma since mid-September and a provide a signal that the October correction lower has likely concluded.
  • Pressure on the VIX continues, having traded lower every day this week. The index today has touched the lowest since Sep20 with markets absorbing near-term Fed, QRA and NFP risks.
  • Equity gains are again triggered by the reversal in yields, with the 10y sliding by close to 40bps in just three sessions. Earnings also prove supportive, with Expedia, Gartner and Insulet higher by >10% apiece post-report.
  • Rate-sensitive REITs and real estate names are leading gains, with only energy names lower as WTI and Brent crude futures hit reverse on Hezbollah headlines and a denial that Hamas operations are part of any region-wide activity.

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